When Vietnam was reunified in 1976, the communist leaders had no doubt that the economy would be strong. The Vietnamese had just defeated the United States superpower. There was no reason why the economy wouldn’t soar. These leaders set up an economy that was dedicated to removing exploitation and financial greed. In doing this, the agricultural sector was affected significantly.
All land and businesses become public property
The private ownership of land or a business was not allowed. Any previous privately owned businesses were closed or taken over by the government. These actions, meant to strengthen the economy, were part of the economy’s demise. The farmers were upset because all motivation to work hard was lost, as every farmer would receive a similar payment.
Heading towards Capitalism
In 1982, the Socialist government understood that they had to make a change. The initiative they took was a step toward capitalism. A family could buy a piece of land to farm, and the families could choose to keep or sell anything in surplus. Next, citizens were allowed make goods at home and sell them, and also raise and sell livestock. During this period, the economy seemed to bounce back. Agricultural production and food availability increased by thirty and twenty percent respectively. Despite these figures, the U.N. found that personal income was down between 1976 and 1985, and many people were going malnourished.
Doi Moi is introduced
In December of 1986, The VCP discussed the failed economic policies of the SRV and developed their economic renovation program called Doi Moi. The idea behind the new system was to use the successful program that the farmers were using for entrepreneurship, and bring it to the rest of the economy. The government now allowed citizens to create for-profit businesses. The immediate result of the reform was unsteady and lead to a huge increase in unemployment.
Doi Moi in today's economy
Today, Doi Moi is still practiced in Vietnam. The policy has helped Vietnam's economy grow since the 1980's. However, Vietnam's economy still trails behind the much of the rest of the world. From the chart below, it does seem that Vietnam's economy hasn't taken as big of a hit as the rest of the world's. However, time will only tell whether this holds true.
Effects of Doi Moi on the economy of Vietnam
As seen, the GDP per capita in Vietnam was affected by the Doi Moi experiment, although it's effects weren't fully felt until the 1990s, when the GDP per capita began to increase exponentially. This data is based on the ERS International Macroeconomic Data Set, available from the USDA's Economic Research Service
Woods, Shelton. pp 150-156 Vietnam, an Illustrated History. New York. N.Y.: Hippocrene, 2002. Print. ISBN 978-0-7818-0910-8.
This page is part of a class project for our LIT251 class (better known as Understanding Vietnam).
It was created by Stephen Borregine, Daniel Stevens, and James Huie.
Doi Moi: A Vietnamese Economic Policy
After reunification
When Vietnam was reunified in 1976, the communist leaders had no doubt that the economy would be strong. The Vietnamese had just defeated the United States superpower. There was no reason why the economy wouldn’t soar. These leaders set up an economy that was dedicated to removing exploitation and financial greed. In doing this, the agricultural sector was affected significantly.All land and businesses become public property
The private ownership of land or a business was not allowed. Any previous privately owned businesses were closed or taken over by the government. These actions, meant to strengthen the economy, were part of the economy’s demise. The farmers were upset because all motivation to work hard was lost, as every farmer would receive a similar payment.Heading towards Capitalism
In 1982, the Socialist government understood that they had to make a change. The initiative they took was a step toward capitalism. A family could buy a piece of land to farm, and the families could choose to keep or sell anything in surplus. Next, citizens were allowed make goods at home and sell them, and also raise and sell livestock. During this period, the economy seemed to bounce back. Agricultural production and food availability increased by thirty and twenty percent respectively. Despite these figures, the U.N. found that personal income was down between 1976 and 1985, and many people were going malnourished.Doi Moi is introduced
In December of 1986, The VCP discussed the failed economic policies of the SRV and developed their economic renovation program called Doi Moi. The idea behind the new system was to use the successful program that the farmers were using for entrepreneurship, and bring it to the rest of the economy. The government now allowed citizens to create for-profit businesses. The immediate result of the reform was unsteady and lead to a huge increase in unemployment.Doi Moi in today's economy
Today, Doi Moi is still practiced in Vietnam. The policy has helped Vietnam's economy grow since the 1980's. However, Vietnam's economy still trails behind the much of the rest of the world. From the chart below, it does seem that Vietnam's economy hasn't taken as big of a hit as the rest of the world's. However, time will only tell whether this holds true.Effects of Doi Moi on the economy of Vietnam
As seen, the GDP per capita in Vietnam was affected by the Doi Moi experiment, although it's effects weren't fully felt until the 1990s, when the GDP per capita began to increase exponentially. This data is based on the ERS International Macroeconomic Data Set, available from the USDA's Economic Research Service
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Further Reading
This page is part of a class project for our LIT251 class (better known as Understanding Vietnam).
It was created by Stephen Borregine, Daniel Stevens, and James Huie.
LAST UPDATE: 27-April-2010